LEGISLATIVE UPDATE

2011 GENERAL SESSION

DEATH (BUT IT’S GETTING BETTER) OF A BILL

• Manufacturing exemption died in committee

• Simple roll call issue

• No real debate other than on exemptions as a whole

• Previous concern over large users

• Use for a recruitment tool, not for existing companies

MANUFACTURING – CHEYENNE REFINARY

Capital Investments: $ 77,065.654

Salaries and Benefits $ 33,250,750Energy and Utilities 17,576,526Other expense (excl tax and depr) 60,803,802Refinery Expense $114,357,543

Property Tax: $ 1,808,068Use Tax 485,389Fuel Tax 14,077,614Sales Tax 996,602Total Wyoming Taxes $ 17,367,672

MANUFACTURING – CHEYENNE REFINARY

• We ESTIMATE the amount of sales tax that Frontier Refining has not paid to the State of Wyoming due to the manufacturing exemption is $2,600,000. This number could vary depending on how much was spent on maintenance VS investment. This estimate is based on a 56% capital investment ratio for plant and equipment. Actual numbers are collected by the Dept. of Revenue, but are confidential and not available to WEDA.

MANUFACTURING

• Wyoming lost 1,317 industrial jobs and 92 manufacturers between September 2008 and September 2010 — the first loss MNI has logged for the state after reporting an increase of 10.6 percent between September 2005 and September 2008.

• Industrial machinery and equipment saw a decline of 6.4 percent. Industrial machinery and equipment currently account for 3,699 of Wyoming's industrial jobs.

JOINT REVENUE• John Hines R S23 Chairman• Paul Barnard R S15 • Cale Case R S25 • Fred Emerich R S05 • Drew Perkins R S29 House Pat Childers R H50 Chairman

• Gregg Blikre R H53 • Rita Campbell R H34 • W. Patrick Goggles D H33 • Michael Madden R H40 • David Miller R H55 • Owen Petersen R H19 • Mark Semlek R H01 • Clarence Vranish R H49

Legislative Districts

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FOCUS ON REVENUE

• All (or a majority) of WEDA issues will end up in front the Revenue Committee

BONDING INCREASESF0024

• Increase Treasurer bonding authority from $100M to $600M

• Increase focused on a project somewhere in the Western part of the State

• Treasurer looking at bonds without the requirement of security enhancement

• Excellent recruiting tool and weeds out marginal companies

BONDING INCREASESF0024

• WEDA recommendation to increase to $700,000,000

• Extend sunset to 2016 to avoid budget cycle

DATA CENTER EXEMPTION• Combines software into hardware

exemption

• Will hopefully allow for colocation

• Tiered approach – for “Mega” projects exempts:– First 3 years of electricity– UPS– Back up power generation– HVAC

DATA COLLECTION – SF0009

• Provide funding for data analyzing

• Third party data collection

• Answer specific legislative questions

• Increase WEDA credibility among legislators

• Provide much needed service

• Could be used to provide analysis on legislative issues.

DATA COLLECTION – SF0009

• Collect, compile, analyze and distribute county economic data

• Very beneficial for counties with large public land holdings

TO DO LIST

1 TALK TO LEGISLATORS2 TALK TO LEGISLATORS FRIENDS3 TALK TO LEGISLATORS PETS4 EMAIL LEGISLATORS5 CALL LEGISLATORS6 SEND SMOKE SIGNALS TO

LEGISLATORS7 FOCUS ON REVENUE